$AMZN,$OHI,$ALGT,$BCO,$EDR,$WBA,$USG,$DAN,$GPI
In this report we examine stocks that C-level officers and directors bought and sold ending the week of September 22nd, 2017. Insiders sell stock for a variety of reasons but they generally buy for just one, to make money. We only look at material amounts of money, $100k or more, as anything less could be window dressing. The bar is different on selling as the natural state of management is to be sellers. Most companies provide significant amounts of their compensation packages as stock. Therefore we analyze selling for unusual patterns; such as insider selling 25% or more of their holdings or multiple insiders selling near 52 wk. lows. Another red flag is large planned sale programs that just start out of the blue.
We generally ignore 10% shareholders as they tend to be OPM (other people’s money) and not the SMART money we are trying to go to school on. Although this info is available for free from the SEC’s Web site , Edgar, we subscribe to the Washington Service as they provide a way to manage and make sense from the realms of data. To learn more about our strategy visit our website at The Insiders Fund. We welcome your comments on our analysis. We may own positions long or short in any of these names and are under no obligation to disclose that-So do your own research.
Buying
Omega Health Investors OHI. Director Bernard Korman takes advantage of a 10% earnings related price drop and a five year low to scoop up a cool $2.6 million of stock at an average price of $28.24. OHI is a health care REIT with a 9.1% dividend yield. It invests in healthcare facilities, primarily in long-term healthcare facilities in order to create its portfolio. Omega is vulnerable to changes in Medicare and Medicaid and reduced guidance by about 5% in the last earnings conference call. None the less this price drop is making me look twice.
Allegiant Travel ALGT President John Redman upped his holdings by 13.5% purchasing 11,000 shares at $138.28. This vote of confidence has done little to lift the stock though as his average price is lower than Friday’s closing price of $132.25. Allegiant Travel Company, a leisure travel company, focuses on the provision of travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited frequency nonstop flights between under-served cities and leisure destinations. As of February 1, 2017, it operated a fleet of 47 MD-80 aircraft, 34 Airbus A320 series aircraft, and 4 Boeing 757-200 aircraft provided services on 377 routes to 119 cities. Airline stocks have been under pressure and we would prefer DAL,LUV, and UAL to ALGT but we might nibble here too.
Brinks BCO CEO Doug Pertz increased his position by 5.9% buying 9,150 shares at an average price of $76.55. This has been a money-maker for us so we are happy to get back in the game with this proven management team. The Brinks Company provides secure transportation, cash management services, and other security-related services worldwide. Pertz team has been able to wring out superior performance from this 100-year-old company. The stock has responded in kind and this earnings related drop in price is likely to be temporary.
Education Realty Trust EDR This one is probably a no-brainer. When the CEO buys $700.2 k and the CFO, Brewer, increases his holdings by 37.5% with his purchase of $175.1 k of stock at$35.01,buy first and ask questions later.The firm invests in the real estate markets of United States. It invests collegiate housing communities. The firm develops, acquires, owns, and manages collegiate housing communities located near university campuses.
Walgreens Boots Alliance WBA Director John Lederer bought 20,000 at $67 as Walgreens cratered on the news that Amazon was interested in entering the pharmacy business. It’s not likely to us that Amazon has a great ability to disrupt the pharmacy business as mail order pharmacy has been around for years with limited appeal. Besides getting a prescription filled is more of an immediate rather complicated situation with all kinds of regulatory and insurance complications that your pharmacist navigates. Walgreens recently beat earnings expectations and we are highly confident that patient longs can be rewarded.
Charter Communications CHTR CFO Winfrey makes the first open market purchase of stock since 2011 buying $1.0 million worth of stock at $323.61. This has been a hard place to make money but CFO buys are my favorite insider buy.
Selling
Amazon AMZN No one can say Jeff Bezos is a dummy. He unloaded $1.1 billion of stock last week while Amazon made an all time high. It’s hard to say this means much about stock prediction as it only represents 1.3% of his holdings. But then everyone needs a billion dollars now and then.
USG USG According to the Washington Service On Oct. 26, USG Corp. (USG) released better-than-expected third quarter revenue, which assisted in boosting shares to a three-year high of $34.80 that same day (shares hit a new high on Nov. 1). On Oct. 31, Vice President and Chief Administrative Officer Brian J. Cook sold 30,000 shares of the building materials manufacturer. Cook reduced his holdings by 26.2% with the $1 million sale, his fifth at USG. Cook sold at a price just cents below the October high.
Dana Dan 6 insiders sold a combination of stock and options at record high prices with the sale of 36,603 shares by VP Wallace being notable as he unloaded 25.3% of his holdings. Dana Incorporated manufactures and sells driveline, sealing, and thermal-management products for vehicle manufacturers in North America, Europe, South America, and the Asia Pacific. The company operates in four segments: Light Vehicle Driveline Technologies, Commercial Vehicle Driveline Technologies, Off-Highway Driveline Technologies, and Power Technologies. The Light Vehicle Driveline Technologies segment offers front axles, rear axles, driveshafts/propshafts, differentials, torque couplings, and modular assemblies for use in light trucks, sport utility vehicles, crossover utility vehicles, vans, and passenger cars.
Group 1 Automotive GPI Four insiders sold $3.7 M worth of stock taking advantage of record high prices and hurricane related demand for replacement autos to sell the most stock in a year. Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. It sells new and used cars, light trucks, and vehicle parts; arranges vehicle financing; sells service and insurance contracts; and provides automotive maintenance and repair services